SOUTH ASIA REGIONAL FORUM ON TRADE FACILITATION. NEW DELHI May

Transcription

1 Namaste & Good Morning 1!

2 SOUTH ASIA REGIONAL FORUM ON TRADE FACILITATION NEW DELHI May Trade Facilitation Efforts and Challenges in Nepal Paper Presented By 2 Ravi Bhattarai Nirmal Kumar Mainali

3 Customs Points in Foreign 3 Trade

4 Infrastructure Development 4 Dry port has been developed in four major customs: Biratnagar, Mechi, Birgunj and Bhairawa Customs. Dry port construction work going on in Tatopani custom (main custom for trading with China) Feasibility study has been done for the construction of dry port in Sharalahi, Rajbiraj, Gaur and Maheshpur Customs. Integrated check post construction in Birantagar, Birgunj, Nepalgunj and Bhairawa

5 Acts, Policies and Major Initiatives Taken 5 Custom Acts and Regulations amended and new provisions are incorporated in line with Revised Kyoto Convention and WTO Valuation system Trade Policy 2009 and Industrial Policy 2010 EIF Steering Committee under the chairmanship of Chief Secretary which is apex body for all trade and trade facilitation related issues Trade and Transport Facilitation Committee under Commerce Secretary to steer trade

6 Continued 6 Customs opening days and hours harmonized with the bordering countries India and China s opening days and hours Tariff rates streamlined as per WTO commitments 100 percent performance based incentives to the customs employees Emphasis on good moral conduct and transparency on operation

7 Institutions Involved 7 Government : Ministry of Commerce and Supplies, Ministry of Finance, Ministry of Agriculture Development, Ministry of Industry, Ministry of Physical Planning, Department of customs, Department of Commerce and Supply Mangement, Department of Food Technology and Quality Control, Departments of Plants and Animal Quarantine, Nepal Bureau of Standard and Measurement, Department of Plant Resources are directly involved.

8 Continued. 8 Similarly the government, semi government and private enterprises and agencies, such as NITDB, NTWCL, TEPC, FNCCI, NCC, HAN, CNI, CAN and GAN etc also are also involved in the process.

9 Automation and ICT 9 15 Major customs under ASYCUDA System Selectivity Module implemented in 6 major customs e-master Plan of customs reforms under process of formulation 10 Major customs have been linked in Wide Area Network Cash receipt by banks through ASYCUDA System in 5 major customs

10 Risk Management 10 Seperate PCA Office established Selectivity Module Implemented in six major customs - Clearance through : Green, Yellow, Blue and Red Lanes Low risk items clearance through Green Channel Post Engine for Risk Management : - Post Clearance Audit Office, Department of Revenue Investigation, Internal Revenue Department, Nepal Police, Armed

11 Electronic Payment System 11 Directly cash payable from 5 customs through ASYCUDA System Availability of any Branch Banking facility for tariff payment Quick cheque clearance system No electronic payment system from one bank to another bank electronic clearing system needs to be developed

12 Clearance System of Perishable 12 Items First priority on customs clearance Most of the clearance through Green and Yellow Lane Clearing in one hour Record needs to be up dated Incentives tied up to quick clearance No provision on Custom Act and regulation

13 13 Trade Facilitation by Customs Reform & Modernization Strategy CRM Action Plan CRM Action Plan CRM Action Plan CRM Action Plan ( Proposed ) CRM Action Plan focuses on paperless Customs services, accession to the revised Kyoto convention, reduction of the number of documents required to make Customs offices functional at the level of best South Asian Country, facilitating eighty percent of the import cargo through Green Channel, modernization of facilities, especially, equipment available at all the major Customs, human resource development and management institutionalization, making Client Service Desk functional at DOC and main 10 Customs Offices, higher level of interactions with stakeholders through Trade Facilitation Committee. The strategic plan incorporates Customs vision, mission, strategies, objectives, activities, tasks, performance

14 Challenges and Threats of Trade Facilitation 14 Doing business Report, 2013 indicators ranked Nepal at 171 for trading across borders. The report discloses- Documents required to export 11pieces, time to export 41 days, Cost to export US $195 per container, Document to import 11 pieces, Time to import 38 days Cost to import US $ 2095 per container.

15 Major challenges in trade facilitation 15 Excessive documentation requirement. Lack of automation and insignificant use of information technology. Lack of transparency, unclear and unspecified import and export requirements. Inadequate and inefficient procedures and risk assessment techniques. Lack of cooperation among customs and other governmental agencies.

16 Continued. 16 Amendments in trade and customs related legislations. Implementation of improved management techniques Re-organization and reengineering of organization structures. Building new as well as upgrading existing infrastructures, such as roads, railway, airports, ICT, and port facilities (Calcutta ).

17 17 Buddha Temple

18 18 Adventure Trekking

19 19 Thank You!

20 Customs Reforms : Direct Impact on Time and Cost 2008/ /13 Area of Reform Year Implication on Time and Cost Removal of manuscript declaration and introduction of system generated SAD. Expansion of the Broker Module to 10 Customs Expansion of ASYCUDA in 5 more Customs, namely Gaur, Jaleshwor, Janakpur, Sunsari and Sarlahi. Implementation of risk based clearance (Selectivity Module) in 6 main Customs. Duties collected and receipt issued through bank at 5 main Customs Reduce Step of processing and thus reducing time and cost. 2009/ 10/11 Reduce step to go to Computer operator for Declaration entry and thus reduced time and cost Reduce time because of manual to automated Customs Declaration. 2010/ 11 Reduce time and cost by routing Declaration to Green lane at least 30 percent in Customs offices covering 80% of tansaction Removal of Customs manual cash receipt issue and reduces step, thus reduces time and facilitate payment.

21 Customs Reforms: Direct Impact on Time and Cost 2008/ /13 Area of Reform Year Implication on Time and Cost Harmonization of the working hours at border Customs. Establishment of web-based Valuation Database Management System for third country import of goods. Establishment of a separate Post Clearance Audit Office. Developing client friendly Customs web-site providing FAQ and Integrated Tariff Search Engine. Formation of Trade Facilitation Committee with clear Terms of Reference Aligned Nepal Border opening hour to Indian Border and open in Saturday as well, thus reducing time onward s 2010 onward s Reduces intervention by Customs, thus reducing time of value determination by giving access to database. Enforcing the notion of Risk management at Customs Clearance Avoiding Clients to approach to Customs offices for seeking information, thus reducing time onward s Handling Clients grievances for early settlement of issues thus reducing time and cost.

22 Other Reform Initiatives ASYCUDA implementation Since 1998 Customs Reform and Modernization Strategic Action Plan (CRMSAP) - 1 st ( ), 4 th upcoming ( ) Optical Fiber Connectivity 11 Major Customs (2012) Installation of IP Camera (2011/12) 4 Major Customs Payment through Bank with Security enabled receipt (2012) 5 Major Customs Web based systems - Passenger Clearance, Valuation, Agent Module, RM & DW (2013) E-Customs Master Plan (2013) Restructuring Nepal Customs (2013) Single Window ( )